Loews Corporation Reports Net Income of $242 Million for the First Quarter of 2013

  Loews Corporation Reports Net Income of $242 Million for the First Quarter
  of 2013

Business Wire

NEW YORK -- April 29, 2013

Loews Corporation (NYSE:L) today reported net income for the 2013 first
quarter of $242 million, or $0.62 per share, compared to $367 million, or
$0.92 per share, in the 2012 first quarter. Net income in the first quarter of
2013 includes an after tax ceiling test impairment charge of $92 million at
HighMount Exploration & Production LLC related to the carrying value of its
natural gas and oil properties as compared to an impairment charge of $28
million in the prior year quarter. Excluding these non-cash impairment
charges, net income (non-GAAP) was $334 million in the 2013 first quarter as
compared to $395 million in the 2012 first quarter.

Book value per share increased to $49.93 at March 31, 2013 from $49.67 at
December 31, 2012.

CONSOLIDATED HIGHLIGHTS

                                            
                                             Three Months Ended March 31,
(In millions, except per share data)            2013          2012  
                                                 
Income before net investment gains and            $   320         $   376
ceiling test impairment charges
Non-cash ceiling test impairment                      (92)           (28)  
charges
Net investment gains                            14            19    
Net income attributable to Loews             $   242        $   367   
Corporation
                                                                  
Net income per share                         $   0.62       $   0.92  
Book value per share at:
March 31, 2013                                    $   49.93
December 31, 2012                                     49.67
March 31, 2012                                  48.96      
                                                                  

Excluding the non-cash ceiling test impairment charges, the decrease in net
income is primarily due to reduced parent company investment income as a
result of lower performance for the trading portfolio.

CNA Financial Corporation’s earnings were essentially unchanged with the prior
year primarily due to improved current year non-catastrophe underwriting
results offset by lower investment income, higher catastrophe losses and
decreased net favorable prior year development.

Diamond Offshore’s earnings decreased due to lower utilization primarily from
fewer revenue earning days due to increased rig surveys.

SHARE REPURCHASES

At March 31, 2013, there were 389.9 million shares of Loews common stock
outstanding. During the three months ended March 31, 2013, the Company
purchased 2.1 million shares of its common stock at an aggregate cost of $92
million. Depending on market conditions, the Company may from time to time
purchase shares of its and its subsidiaries’ outstanding common stock in the
open market or otherwise.

CONFERENCE CALLS

A conference call to discuss the first quarter results of Loews Corporation
has been scheduled for 11:00 a.m. ET, today. A live webcast of the call will
be available online at the Loews Corporation website (www.loews.com). Please
go to the website at least ten minutes before the event begins to register and
to download and install any necessary audio software. Those interested in
participating in the question and answer session should dial (877) 692-2592,
or for international callers, (973) 582-2757. The conference ID number is
33378851. An online replay will also be available on the Loews Corporation’s
website following the call.

A conference call to discuss the first quarter results of CNA has been
scheduled for 10:00 a.m. ET, today. A live webcast will be available at
http://investor.cna.com. Those interested in participating in the question and
answer session should dial (888) 438-5524, or for international callers, (719)
325-2464. Please go to the website at least ten minutes before the event
begins to register and to download and install any necessary audio software.

A conference call to discuss the first quarter results of Boardwalk Pipeline
has been scheduled for 9:00 a.m. ET, today. A live webcast will be available
at www.bwpmlp.com. Those interested in participating in the question and
answer session should dial (877) 546-5018 or for international callers, (857)
244-7550. The conference ID number is 49371970. Please go to the website at
least ten minutes before the event begins to register and to download and
install any necessary audio software.

A conference call to discuss the first quarter results of Diamond Offshore was
held on Thursday, April 25, 2013. An online replay is available on Diamond
Offshore’s website (www.diamondoffshore.com).

ABOUT LOEWS CORPORATION

Loews Corporation, a holding company, is one of the largest diversified
corporations in the United States. Its principal subsidiaries are CNA
Financial Corporation (NYSE: CNA), a 90% owned subsidiary; Diamond Offshore
Drilling, Inc. (NYSE: DO), a 50.4% owned subsidiary; Boardwalk Pipeline
Partners, LP (NYSE: BWP), a 55% owned subsidiary; HighMount Exploration &
Production LLC, a wholly owned subsidiary; and Loews Hotels, a wholly owned
subsidiary.

FORWARD-LOOKING STATEMENTS

Statements contained in this press release which are not historical facts are
“forward-looking statements” within the meaning of the federal securities
laws. Forward-looking statements are inherently uncertain and subject to a
variety of risks that could cause actual results to differ materially from
those expected by management of the Company. A discussion of the important
risk factors and other considerations that could materially impact these
matters as well as the Company’s overall business and financial performance
can be found in the Company’s reports filed with the Securities and Exchange
Commission and readers of this release are urged to review those reports
carefully when considering these forward-looking statements. Copies of these
reports are available through the Company’s website (www.loews.com). Given
these risk factors, investors and analysts should not place undue reliance on
forward-looking statements. Any such forward-looking statements speak only as
of the date of this press release. The Company expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to any
forward-looking statement to reflect any change in the Company’s expectations
with regard thereto or any change in events, conditions or circumstances on
which any forward-looking statement is based.

                                             
Loews Corporation and Subsidiaries
Selected Financial Information

                                                           
(In millions)                                     Three Months Ended March 31,
                                               2013         2012   
Revenues:
CNA Financial                                     $   2,479       $  2,369
Diamond Offshore (a)                                  732            796
Boardwalk Pipeline                                    329            314
HighMount                                             68             76
Loews Hotels                                          94             80
Investment income and other                      8            77     
                                               3,710        3,712  
Investment gains:
CNA Financial                                         24             32
Corporate and other                                          
                                               24           32     
Total                                         $   3,734      $  3,744  
                                                                  
Income (Loss) Before Income Tax:
CNA Financial                                     $   340         $  334
Diamond Offshore (a)                                  205            252
Boardwalk Pipeline                                    99             92
HighMount
Operations                                            6              10
Ceiling test impairment charge                        (145    )      (44    )
Loews Hotels                                                         7
Investment income, net                                7              76
Other (b)                                        (24     )     (18    )
                                               488          709    
Investment gains:
CNA Financial                                         24             32
Corporate and other                                          
                                               24           32     
Total                                         $   512        $  741    
                                                                  
Net Income (Loss) Attributable to Loews
Corporation:
CNA Financial                                     $   212         $  207
Diamond Offshore (a)                                  82             87
Boardwalk Pipeline (c)                                33             35
HighMount
Operations                                            4              6
Ceiling test impairment charge                        (92     )      (28    )
Loews Hotels                                                         4
Investment income, net                                5              50
Other (b)                                        (16     )     (13    )
                                               228          348    
Investment gains:
CNA Financial                                         14             19
Corporate and other                                          
                                               14           19     
Net income attributable to Loews              $   242        $  367    
Corporation

        Includes a $25 million gain ($9 million after tax and noncontrolling
(a)   interests) for the three

        months ended March 31, 2012 on the sale of a jack-up rig.
(b)     Consists primarily of corporate interest expense and other unallocated
        expenses.
        Represents a 55.4% and 61.8% ownership interest in Boardwalk Pipeline
(c)     for the respective

        periods.
        

                                            
Loews Corporation and Subsidiaries
Consolidated Financial Review
                                                                 
                                                          
(In millions, except per share data)              Three Months Ended March 31,
                                               2013        2012    
Revenues:
Insurance premiums                                $   1,764      $  1,649
Net investment income                                 641           726
Investment gains                                      24            32
Contract drilling revenues                            700           755
Other                                            605         582     
Total                                            3,734       3,744   
                                                                 
Expenses:
Insurance claims & policyholders’                     1,429         1,381
benefits
Contract drilling expenses                            375           397
Other (a)                                        1,418       1,225   
Total                                            3,222       3,003   
                                                                 
Income before income tax                              512           741
Income tax expense                               (114    )    (222    )
                                                                 
Net income                                            398           519
Amounts attributable to noncontrolling           (156    )    (152    )
interests
Net income attributable to Loews              $   242       $  367     
Corporation
                                                                 
                                                                 
Diluted income per share attributable to      $   0.62      $  0.92    
Loews Corporation
                                                                 
Weighted diluted number of shares                392.16      397.44  

        Includes non-cash impairment charges of $145 million and $44 million
        ($92 million and $28 million

(a)   after tax) for the three months ended March 31, 2013 and 2012 related
        to the carrying value of

        HighMount's natural gas and oil properties.
        

Contact:

Loews Corporation
Peter W. Keegan, 212-521-2950
Chief Financial Officer
or
Mary Skafidas, 212-521-2788
Investor and Public Relations